28th Aug 2015 10:01
LONDON (Alliance News) - Fair Oaks Income Fund Ltd said Friday it outperformed the US bank loan and high yield indices in the first half of 2015, reporting a total return on net asset value of 3.1%.
During the half year the fund acquired four additional investments in three new collateralized loan obligations, and said that at the end of June it had exposure to 783 issuers, with an average loan spread of USD Libor + 4.5%.
"We expect the low default environment in the US loan market to continue," the fund said. "However, we expect technical factors to increase loan price volatility, benefiting the Master Fund?s CLO income note investments as a consequence of CLO?s closed-ended nature, lack of mark-to-market triggers and ability to benefit from dips in loan prices as they continually re-invest loan prepayments."
Shares in Fair Oaks are trading up 0.4% at 1.01 pence Friday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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